Oct 1 2007
Savers in the UK should be afforded the same flexibility in relation to their cash investments into an individual savings account (Isa) as is the case with child trust funds (CTF), it has been suggested.
Parents with cash invested in a CTF have the option to transfer these funds into an equity-based scheme without relinquishing their tax-free status, but this flexibility is not available for Isa funds under the same circumstances.
And the government ought to change this situation and enable people to manage their money in a manner that suits the particular needs at any given time, experts at the Nationwide Building Society insist.
"While equities should be seen as long-term investments, we believe it is important that consumers have the option to switch to cash if their attitude to risk changes," said Matthew Carter from Nationwide.
"The government has got it right with CTFs and the chancellor has an opportunity to make improvements to the current Isa regime to bring them into line," he added.
Figures from HM Revenues & Customs show that the most recent tax year saw record amounts invested in Isas in the UK.
